The Little Book of Stock Market Profits: The Best Strategies of All Time Made Even Better
A wide variety of strategies have been identified over the years, which purportedly outperform the stock market. Some of these include buying undervalued stocks while others rely on technical analysis techniques. It's fair to say no one method is fool proof and most go through both up and down periods. The challenge for an investor is picking the right method at the right time. The Little Book of Stock Market Profits shows you how to achieve this elusive goal and make the most of your time in today's markets.
Written by Mitch Zacks, Senior Portfolio Manager of Zacks Investment Management, this latest title in the Little Book series reveals stock market strategies that really work and then shows you how they can be made even better. It skillfully highlights earnings-based investing strategies, the hallmark of the Zacks process, but it also identifies strategies based on valuations, seasonal patterns and price momentum.
Specifically, the book:
- Identifies stock market investment strategies that work, those that don't, and what it takes for an individual investor to truly succeed in today's dynamic market
- Discusses how the performance of each strategy examined can be improved by combining into them into a multifactor approach
- Gives investors a clear path to integrating the best investment strategies of all time into their own personal portfolio
Investing can be difficult, but with the right strategies you can improve your overall performance. The Little book of Stock Market Profits will show you how.
Chapter One The Crystal Ball of Wall Street 1
Chapter Two Size Matters 19
Chapter Three Once More Unto the Breach 37
Chapter Four The Big Mo 59
Chapter Five The Inside Story 77
Chapter Six Song of the Shares 93
Chapter Seven Cash Is King 111
Chapter Eight It’s Worth What?! 127
Chapter Nine Earnings Surprises: The Gift that Keeps on Giving 145
Chapter Ten A Time to Plant and a Time to Reap 165
Chapter Eleven The More the Merrier 185
With the market under intense pressure following the historic downgrade of the United States' credit rating, equity investment is not a hot topic. Many pundits argue that the malaise in the market is reflective of a declining American empire. They point overseas toward the East or bury their heads in the ground to look for shiny rocks. This negative sentiment—while understandable—is actually very good news for investors because stocks are currently on sale. Investors must look past the volatility of the immediate present and realize that if they invest over the long-term, substantial returns can be generated by holding equities, provided they know how to select the right stocks. In THE LITTLE BOOK OF STOCK MARKET PROFITS (Wiley; November 2011; $22.95; 978-0-470-90341-4; Hardcover; Ebook) Mitch Zacks, Senior Portfolio Manager at Zacks Investment Management, provides the stock selection methods that can generate the best returns.
This book identifies and analyzes the major methods investors use to generate alpha. “Alpha is the white whale of the investment business,” says Zacks. “Quite simply, the search for alpha is a quest to find a means of selecting stocks that will generate performance greater than the level of risk borne. The search for alpha is not so much trying to find a free lunch in the equity markets as much as it is the art of using statistics to identify groups of stocks that will beat the market.” He adds, “The book focuses on providing information that helps generate annual returns that are several hundred basis points or a few percentage points above the market’s returns while bearing no additional market risk.”
Engaging and informative, this reliable guide addresses:
- Employing sell side analyst recommendations in an investment process
- Using momentum-based strategies and what type of stocks this method works best with
- Piggybacking on the trading decisions made by informed individuals—from large shareholders to CEOs—through the use of publicly disclosed insider data
- Understanding Initial Public Offerings (IPOs) and whether they will boost or hinder a portfolio
- Following specific rules when buying value stocks
- Implementing an earnings accrual investment strategy that outperforms the market by effectively focusing on the quality of earnings
- Handling earnings announcements and what to make of post-earnings announcement drifts
- Following seasonal patterns by looking at common calendar anomalies such as the January Barometer and May/October Effect
Zacks also discusses the use of multifactor models. Combining two or more different factors—for instance stocks trading at attractive valuation metrics and exhibiting strong price momentum—can generate returns that are greater than any one of the factors by itself.
THE LITTLE BOOK OF STOCK MARKET PROFITS presents various strategies that will help improve the investment process, while allowing investors to take advantage of certain market anomalies.
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The Little Book of Stock Market Profits: The Best Strategies of All Time Made Even Better (US $22.95)
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